Business Environment, 1st Edition by Pearson

Chapter 9: Economic System and Capitalism | 105 |

A Just System of Reward and Penalty

Although there are critics of capitalism who argue that capitalism

is a destructive system that offers unjust punishment and penalty,

the advocates of capitalism argue that it is the most absolute system

of rewards and penalty. They argue that the richest award in a free-

market economy goes to the ablest, the most prudent and daring of

producers and sellers of products and services. A man who shows

pioneering initiative and exhibits extraordinary resourcefulness,

grit and determination is rewarded with highest profi ts. The system

ensures that rewards are ...